Released on = March 12, 2007, 3:01 am

Press Release Author = Shushmul Maheshwari

Industry = Industrial

Press Release Summary = China reported a 6.8 times growth in nickel ore imports in
2006. The reasons for high imports are China's burgeoning stainless steel industry
and limited nickel reserves.

Press Release Body = General Administration of Customs has released statistics
indicating that China, in 2006, imported around 3.78 Million Tons of nickel ore, 6.8
times higher than 2005. The total cost of nickel ore imports reached US$ 440 Million
in 2006, a 1.5 fold rise over 2005. However, average prices of imports slashed down
by 67.7% to US$ 116.40 per ton.

In 2006, China relied heavily on the Philippines for nickel ore imports. The
Philippines shipped 3.34 Million Tons of nickel ore to China, 11.6% higher than
2005. This amount was 88.5% of the total nickel ore imports of China. In 2005, it
was the Australian nickel mines that supported Chinese nickel industry.

Shanghai Securities News reported that import of nickel ore in China boomed in 2006
because huge quantities of low-grade nickel ore was imported from the Philippines
that lead to a decline in average import price.

Annually, around 1.3 million tons of nickel is produced globally. Two-third of the
nickel is used in stainless steel production (as raw material), 20% in coins and
alloys, and 10% in electroplating.

As nickel is among the raw materials for the production of stainless steel, the
rapid growth in stainless steel's production in China has raised the demand for
nickel. China's nickel ore reserves are insufficient to meet the demands of its
domestic market. Therefore, China is reliant on imports of nickel ore.

According to the RNCOS report, "Nickel Market Outlook (2007)", the demand of nickel
in China is undoubtedly on a rise, but some matters on the supply side needs serious
thought. China's domestic supply of nickel is limited as its nickel reserves aren't
very rich. Also, around 50% of the nickel production relies on imported supplies of
intermediate materials. Hence, there is a little scope to raise the domestic
production and this is the reason why China depends on imports heavily to meet its
demand.

The market research report also talks about the China's import from other countries
in terms of percentage, production and consumption forecast of refined nickel (by
2010) and forecast of stainless steel production forecast.

Apart from this, the report takes into account the supply and demand scenario of
nickel on global level, the production, consumption, and market value of nickel at
global scale, top ten countries according to their nickel production and consumption
statistics, and future prospects of the nickel industry.

About RNCOS:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit: http://www.rncos.com/Report/IM086.htm
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